August 29, 2024
New Delhi, India
Vedanta
Vedanta Ltd. has scheduled a board meeting on September 02, 2024, to consider and approve the third interim dividend for the fiscal year 2024-25. The record date to determine shareholders’ entitlement for the dividend is set for September 10, 2024. Following this announcement, Vedanta’s shares traded 0.25% higher on Thursday morning.
Previous Dividends: Earlier this year, Vedanta announced two interim dividends of ₹4 and ₹11 per share, rewarding its shareholders amidst a strong financial performance.
Financial Performance Highlights: Vedanta reported robust financial results for the first quarter of FY25:
- Revenue: Consolidated revenue increased by 6% YoY to ₹35,239 crore.
- EBITDA: Earnings before interest, tax, depreciation, and amortization (EBITDA) surged 47% YoY to ₹10,275 crore, with the EBITDA margin improving to 34%.
- Net Profit: Net profit rose 54% YoY to ₹5,095 crore.
- Net Debt: The company’s net debt stood at ₹61,324 crore as of June 30, 2024.
Operational Highlights:
- Alumina Production: Vedanta achieved its highest-ever alumina production at the Lanjigarh refinery, producing 539 kilotonnes (kt), up 36% YoY.
- Zinc Production: Zinc India reported its highest-ever mined metal production at 263 kt, up 2% YoY, while Zinc International’s production stood at 38 kt, down 45% YoY due to lower tonnes milled and zinc grades.
- Iron Ore Production: Karnataka saleable iron ore production stood at 1.2 million tonnes, down 4% YoY due to a temporary suspension of mine production in May 2024.
Management Insights: Ajay Goel, CFO of Vedanta, attributed the strong quarterly performance to reduced production costs, increased volumes, and favorable commodity prices. He also highlighted the success of Vedanta’s $1 billion Qualified Institutional Placement (QIP), which reflects strong investor confidence. “The proceeds from the QIP will help deleverage our balance sheet and reduce financing costs,” Goel stated.
Stock Performance: Vedanta’s stock has gained over 81% since the start of the year and has risen more than 97% in the past year, demonstrating strong investor confidence in the company’s growth trajectory.
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